Millions of Australian workers will soon be better off at retirement as the government works to close a superannuation loophole.
In a move Treasurer Jim Chalmers says would ensure millions of workers are better off, and part of the government’s broader bid to strengthen the super system, legislation will soon be introduced that would make it mandatory for employers to pay the superannuation guarantee every time they pay salary or wages from July 1, 2026.
Dr Chalmers and Assistant Treasurer Stephen Jones said an estimated 8.9m Australians would have higher retirement savings if they received their super guarantees earlier and more frequently throughout their working lives. As it currently stands, it is illegal to not pay workers the super guarantee. If employers do not pay the correct entitlements to an employee by the quarterly payment date, they may be liable for the Superannuation Guarantee charge payable to the ATO.
“Non-payment and underpayment of SG contributions is equivalent to wage theft and has significant impacts on retirement outcomes – delaying retirement, reducing the retirement savings of individuals due to the loss of compounding returns in the fund and results in a loss of insurance coverage for some members. Further, employers who are consistently complying with their SG obligations don’t have a level playing field with non-compliant employers,” the paper says.
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